IDAPA 35.01.05.170 — INFORMATION ON DYED & UNDYED DIESEL FUEL

Sections 63-2423, 63-2425, Idaho Code
01.
Undyed Diesel Fuel Used for Heating Purposes. The consumer will apply directly to the Tax
Commission for a refund of the special fuels tax included in the purchase price of undyed diesel used for heating a
dwelling or building. The distributor may assist the consumer claiming a refund of the special fuels tax by:
(7-1-25)
a.
Properly documenting information on the sales invoice; and
(3-31-22)
b.
Providing the customer with the appropriate forms.
(7-1-25)
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.05
State Tax Commission
Motor Fuels Tax Administrative Rules
Section 171
Page 9
02.
Red-Dyed Diesel. It is illegal to use red-dyed diesel in the main supply tank of a licensed, or
required to be licensed, motor vehicle in Idaho unless the type of user is listed below. Penalties for illegal use of red-
dyed diesel in a motor vehicle are found in Section 63-2460, Idaho Code. The Internal Revenue Code allows the use
of red-dyed diesel by:
(7-1-25)
a.
State and local governments (political subdivisions of the state) for their exclusive use;
(7-1-25)
b.
The engine of a train;
(7-1-25)
c.
A school bus, owned or leased and operated by a political subdivision of the state of Idaho, while
the bus is engaged in the transportation of students and school employees;
(7-1-25)
d.
A vehicle (such as a ground servicing vehicle for aircraft) owned by an aircraft museum;
(7-1-25)
e.
A highway vehicle that is not registered (and is not required to be registered) for highway use under
the laws of any state or foreign country and is used in the operator's trade or business or for the production of income;
(7-1-25)
f.
A highway vehicle owned by the United States that is not used on a highway;
(7-1-25)
g.
A nonprofit educational organization as defined in Internal Revenue Code Section 4221 (d)(5) for
their exclusive use.
(7-1-25)